Aave Community Continues To Completely Remove BUSD From Aave V2



06 June 2023 09:14, UTC


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The plan involves modifying BUSD risk parameters and removing POL BUSD liquidity. The second part of the delisting program will focus on creating unsustainable positions for remaining borrowers to incentivize them to repay adequately or meet the liquidation threshold. The vote will close on June 9.

BUSD has had a rough March. One of the most important developments contributing to the current wave of fear is the New York regulator’s recent order to Paxos to restrict BUSD investments, resulting in a large reduction in the stablecoin’s market value. This decline has caused investors to worry about the safety of their cash on the Binance platform. Nonetheless, the peg to the US dollar remains in place, and users’ cash is still reasonably safe.

Due to the many rumors and suspicions surrounding this stablecoin, investors are withdrawing their funds from the BUSD market and moving them into USDT. Stablecoins formerly had a market worth of over $16 billion, but it has subsequently dropped to roughly $5 billion. Once investors altered their opinions, the flight of cash helped increase Tether’s (USDT) market share up to 52% at the time.

It is reported that Aave implemented the first part of the BUSD delisting plan in March, that is, changing the interest rate strategy of BUSD reserves in the Aave V2 Ethereum pool and increasing the ReserveFactor (reserve factor), removing liquidity and motivating active users to repay debts and convert their positions Move to other stablecoins, though this provides no incentive for inactive vBUSD debt holders.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Sourced from cryptonews.net.

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